Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Economy > Money and Capital Market > Flashcards

Money and Capital Market Flashcards

1
Q

What is Money Market?

A

Borrowing and Lending money for period of less than 1 year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is Capital Market

A

Borrowing and Lending money for more than 1 year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are types of Money Market

A

Secured

Unsecured

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is Notice money

A

Period 1 to 14 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q 
What is Call Money
Purpose 
Collateral and Documents?
Based on?
Interest Rate?
A 
Money otherwise. 
Banks to meet daily cash limits 
No collaterals 
Documents like P-Notes 
Based on Goodwill 
Interest Rate market determined
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Who participate in borrowing and lending in money market

A

Indian and foreign commercial banks
Cooperative banks
DFHI
STCL

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Who only lend in money market

A

UTI
NABARD
LIC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are Cash Management Bills
Time
Interest Rate?

A 
Meet temporary cash mismatch of govt 
Non standard, tradable 
Qualify as RFC, eligible as GSec by bank for SLR 
Put under Ways and Means advances in 1997 
91 days 
Issued at discount rate 
Redeem at face value. 
Difference of 2 is interest earned
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q 
What are Certificate of Deposits 
By 
For 
To
Price
Deposit
Who cant
A

What - Secured P-notes
By - Financial Institutions and Banks
Banks for - 15 days - 3 months. FI - 1 -3 year
To - Individuals, Corporate, Trusts
Price - Discount at Face value
Deposit - Minimum 1 lakh and multiples thereof
Who cant - RRB and LABs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q 
What are Commercial Paper 
By
To
Term
Must
Multiples of
A

What - Unsecured P-notes
By - Corporate, FI, Primary dealers, Satellite dealers
To - Corporate with minimum net worth 4 lacs
Term - Short. min 7 days max 1 year
Must - CRA Ratings
Multiples of - 5 lacs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are Commercial Bills
When
By
To

A 
Aka Bills of Exchange 
Seller need money - Payment date of future 
By - seller / drawee 
To - buyer / drawer 
Can go to banks
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q 
What are T-Bills 
Issued by 
Time 
To 
Limit 
Interest 
Part of NDS or not
A 
Money Market instruments 
Issued by - CG and SG 
Through - RBI
Time - Max 1 year - 14 91 364 
To - Banks FI 
Min - 25k 
Redeem - at face value 
Interest - no. difference b/w SP and Face value 
Part of - negotiable dealing system
Eligible for CRR SLR
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q 
What is DFHL
Why 
By 
When 
What functions (3)
A 
Discount and Finance House of India Limited 
To develop Secondary Market
by RBI + PSB + LIC + GIC + UTI in 1988
2004 transfer RBI holding to SBI 
Biggest primary dealer. operate 2 way - lender + borrower. 
add stability to financial market 
Trade in TB, CP, CD 
Rediscount Commercial Bills 
Participate in Interbank Money
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is LIBOR

A

IR at which Banks lend to each other

Primary Benchmark

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is MIBOR

A

NSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is MIBID

A

NSE Benchmark

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Sukhmoy Chakraborty committee

A

Money Market Reforms

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is Capital Market instruments

A 
G SEc 
MF
FI
Venture 
Merchant Banks
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What are Govt Securities

A

Tradeable Capital Market instruments
Issued by CG and SG
Risk free

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q 
What are bonds 
Term 
IR 
Price
By 
To
A 
Aka Dated securities 
Long and fixed term 
Floating / Fixed IR 
Price - Face value 
By - Indiv, Corporate, NRI, SGs 
To - Indiv, NRI, FII
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

CG issues

A

Bonds and T bills

22
Q

SG issues

A

Bonds only - SDL

23
Q

Other govt bonds

A

Oil Bonds
Saving Bonds
Not thru RBI

24
Q

What are capital indexed bonds

A

Bonds

IR Fixed over inflation rate - WPI / CPI

25
Q

Can FPI invest in SDL?

A

Yes. RBI set the timit

26
Q

What are SDLs?

Principle and IR

A

They are dated Securities
Eligible for LAF
Principle paid - at maturity date
IR served - half yearly

27
Q

What are development banks

A

Regional or international
Term lending
Refinance
Sector specific

28
Q

What are Merchant Bank

A

Aka investment bank
Deal with - COmpanies, not individuals
Advice corporates on fundraising
They underwrite Public issues floated by companies

29
Q

What are collective investment scheme

A 
Many individuals 
inves in asset 
Share returns 
SEBI regulates them 
No include MFs
30
Q

What Are Alternate investment fund

A

Pool investment for real estate
Private equity
Hedge fund

31
Q

What are ANGELS

A

new category of AIFs

Pool money from india and foreign investors

32
Q 
What are Real Estate Investment Trusts 
Issue in 
Invest in 
Issue thru 
Min require asset size 
IPO issue size 
Bought from
A

Reg by SEBI
Pool money
Issue in units in exchange
Guarantee money invest in common property - get income
Issue fund thru - IPO
Min req asset size - 500 crore for being listed
IPO issue size - 250 crore
Brought from - primary and secondary market both

33
Q

Mutual Funds

A

Regulated by SEBI

Public money

34
Q

What are Hedge FUnds

Regulated by

A

like MF
more complex less transparent
Pool money and invest
SEBI reg under AIFs

35
Q

What are Venture Capital

A

Money by FIs

Start up with potential

36
Q 
What are Angel investors 
Wo regulate 
Investor corpus 
Investment time atleast 
Minimum investment 
COmpany time
A 
Wealthy individuals or firms 
Money in start up 
In exchange of ownership / convertible debt 
SEBI 2013 
Reg as AIF 
GEnuine - 5 lacs to 50 cr 
Investor corpus - 10 crore atleast 
Indians only 
Not families 
Investment atleast 2 years 
Minimum investment 2.5 lakhs 
COmpany not older than 3 years
37
Q

What is Private equity

A 
pRivately 
Small period 
Can participate in management of company 
not by IPO 
Company may or may not be listed
38
Q

WHat are Qualified Institutional Placement

A

Sols as shares or fully convertible debentures or partially convertible debentures

39
Q

What are NBFCs

A 
Registed under Companies act 
Loans Insurance 
Not main business agri, industries 
No demand Deposit 
Malegam committee
40
Q

What are ECBs

A

Access to foreign currencyby Indian Companies in PSU
Can commercial bank loans
not use for investment in Speculation
loans for - investment, new project, import capital goods

41
Q

What are Euro Issues

A

indian companies raise foriegn currency using FCCB
Thru GDR to foreign investors
include EURO convertible bonds

42
Q

What are credit default swap

A

kind of insurance agreement on debt default
money By investor To corporates
Risk by corporates
Insure investment in bond by 3rd party
Investor - premium to party - pay indefinitely

43
Q

What are Infra debt funds

A 
By - commercial banks, NBFC 
Domestic or offshore 
Thru units and Bonds 
Set up trust / companies 
NBFC norm registered in RBI 
Only banks and infra companies can sponsor IDFs
44
Q

External sources of finance

A

Bilateral loans
ECB masala bond
Pvt equity
stock market

45
Q

What are types of factoring

A

Domestic

Export oriented

46
Q

Who introduced term repo and Reverse repo

A

Urit patel committee

why - higher stability, better IR signaling

47
Q

Types of MFs

A

Open ended Scheme - investor can buy / sell as when intend to at NAV based price

Close ended - issue units only once called NFO. thereafter on stock maret traded daily. traded at high discout to NAV.

ETF - mix of open and close. listed and traded daily on SE. Price close to NAV

48
Q

Regulatory bodies in india

A 
RBI - credit production, saving , remittances 
IRDA - insurance
SEBI - investment
PFRDA - Pension
FMC - commodity based ETFutures
49
Q

Quasi regulators in india

A

NABARD - RRBI + state and district cooperative banks
SIDBI - state finance corporations
NHB - housing finance companies

50
Q

Regulators and ministries

A

Mofinance - SEBI IRDA RBI PSB DFI
MoUrban dev - NHB
MoSSI = SIDBO
FMC - regulate commodity exchange and brokres. earlier MCA transfer to Finance in 2014

51
Q

What is FSDC

A 
Financial sector development counci; 
MoFinance consent
Not statutory authority 
council of regulators 
FM - chair 
Permanent secretariat 
Inter agency disputes, regulation of dinancial conlomerates, wealth mgt and formations
52
Q

What is FSLRC

A

BN Srikrishna committee. recommendaion -
from area based to task based
develop horizontal structur e- basic reg function by unified finance agency
set up Financial Redressal agency = consumer complains
FSAT - appeals
3 other agency set up to look over banking other than RBI

Economy (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions